CHAPTER -1

INTRODUCTION TO THE TOPIC

The Factories Act, 1948, has been promulgated primarily to provide safety measures and to promote the health
and welfare of the workers employed in factories. The object thus brings this Act, within the competence of
the Central Legislature to enact.
The Factories Act, 1948 (the Factories Act) lays down provisions for the health, safety, welfare and service
conditions of workmen working in factories. ... It applies to all factories employing more than 10 people and
working with the aid of power, or employing 20 people and working without the aid of power .Industrial
Disputes Act, 1947 (the "ID Act") has been enacted for the investigation and settlement of industrial disputes
in any industrial establishment.

BREIF INTRODUCTION TO THE LAW

The Factories Act, 1948 provides safeguard for workers to protect health, provides for safety at the workplace
when dealing with machinery, improves the physical conditions of the workplace, and provides welfare
amenities. Only factories are covered by the Act.

The Act also restricts the hours of work, provides for overtime and spread of working hours, and employment
of young persons and women.

Night Shifts and women

In general, the act prohibits employment of women in night shift. The Act has been recently amended to allow
work in night shift by women in certain sectors including the Special Economic Zone (SEZ), IT sector and
Textiles. This is subject to the condition that the employers shall be obligated to provide adequate safeguards
in the workplace, equal opportunity, their transportation from the factory premises to the nearest point of their
residence. (Section 66) Prohibitions on Employment of Women on or Near Machineries in Motion

The Act indirectly bans employment of women workers on or near machineries in motion. It lays down that
where in any factory it becomes necessary to examine any part of machinery referred to in Section 21, while
the machinery is in motion, such examination shall be carried out only by a specially trained adult male
worker. (Section 22)

1
Also, it provides that no woman shall be allowed to clean, lubricate or adjust any part of a prime mover or of
any transmission machinery while the prime mover or transmission machinery is in motion, if that would
expose the woman to risk of injury from any moving part either of that machine or of any adjacent machinery.
(Section 22)

Furthermore, it provides that no woman shall be employed in any part of a factory for pressing cotton in which
a cotton-opener is at work. (Section 27)

Maternity Leave and Creche Facility

The Act makes provision for maternity leave with wages for expecting mothers for a maximum period of 12
weeks. (Section 79)

The Act provides that every factory with more than 30 women employees shall provide and maintain suitable
room/s and feeding breaks and free milk or refreshment or both for children below 6 years for these women.
(Section 48)

THE FACTORIES ACT 1948

(Arrangement of sections)

CHAPTER I (PRELIMINARY)
1. Short title, extent and commencement.—(1) This Act may be called the Factories Act, 1948.
2
[(2) It extends to the whole of India

(3) It shall come into force on the 1st day of April 1949.
2. Interpretation.—In this Act, unless there is anything repugnant in the subject or context,—
(a) ―adult‖ means a person who has completed his eighteenth year of age;
(b) ―adolescent‖ means a person who has completed his fifteenth year of age but has not completed his
eighteenth year;

4 [(bb) ―calendar year‖ means the period of twelve months beginning with the first day of January in any
year;]
(c) ―child‖ means a person who has not completed his fifteenth year of age;
2
5 [(ca) ―competent person‖, in relation to any provision of this Act, means a person or an institution
recognised as such by the Chief Inspector for the purposes of carrying out tests,
examinations and inspections required to be done in a factory under the provisions of this Act having regard
to—
(i) the qualifications and experience of the person and facilities available at his disposal; or
(ii) the qualifications and experience of the persons employed in such institution and facilities available
therein, with regard to the conduct of such tests, examinations and inspections, and more than one person or
institution can be recognised as a competent person in relation to a factory;
(cb) ―hazardous process‖ means any process or activity in relation to an industry specified in the First
Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished
products, bye-products, wastes or effluents thereof would—
(i) cause material impairment to the health of the persons engaged in or connected therewith, or
(ii) result in the pollution or the general environment:
Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by
way of addition, omission or variation of any industry specified in the said Schedule;]
(d) ―young person‖ means a person who is either a child or an adolescent;
(e) ―day‖ means a period of twenty-four hours beginning at midnight;
(f) ―week‖ means a period of seven days beginning at midnight on Saturday night or such other
night as may be approved in writing for a particular area by the Chief Inspector of Factories;
(g) ―power‖ means electrical energy, or any other form of energy which is mechanically
transmitted and is not generated by human or animal agency;
(h) ―prime mover‖ means any engine, motor or other appliance which generates or otherwise provides power;
(i) ―transmission machinery‖ means any shaft, wheel, drum, pulley, system of pulleys, coupling, clutch,
driving belt or other appliance or device by which the motion of a prime mover is transmitted to or received
by any machinery or appliance;
(j) ‖machinery‖ includes prime movers, transmission machinery and all other appliances whereby power is
generated, transformed, transmitted or applied;

(k) ―manufacturing process‖ means any process for—

(i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up,
demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport,
delivery or disposal; or
3
[(ii) pumping oil, water, sewage or any other substance; or]
(iii) generating, transforming or transmitting power; or
[(iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process
or book binding; 3[or]]
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; [or]
[(vi) preserving or storing any article in cold storage;]

(l) ―worker‖ means a person 4

[employed, directly or by or through any agency (including a contractor) with or without the knowledge of the
principal employer, whether for remuneration or not], in any manufacturing process, or in cleaning any part of
the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or
connected with, the manufacturing process, or the subject of the manufacturing process 3 [but does not include
any member of the armed forces of the Union];
(m) ―factory‖ means any premises including the precincts thereof—
(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months,
and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so
carried on, or
(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on without the aid of power, or is
ordinarily so carried on,—
but does not include a mine subject to the operation of 5 [the Mines Act, 1952 (35 of 1952)], or 6 [a mobile
mobile unit belonging to the armed forces of the Union, railway running shed or a hotel, restaurant or eating
place].

[Explanation [I]—For computing the number of workers for the purposes of this clause all the workers in
[different groups and relays] in a day shall be taken into account;]

[Explanation II.—For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a
Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no
manufacturing process is being carried on in such premises or part thereof;]
(n) ―occupier‖ of a factory means the person who has ultimate control over the affairs of the factory
[Provided that—
(i) in the case of a firm or other association of individuals, any one of the individual partners or members
4
thereof shall be deemed to be the occupier;
(ii) in the case of a company, any one of the directors shall be deemed to be the occupier;
(iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any
local authority, the person or persons appointed to manage the affairs of the factory by the Central
Government, the Stale Government or the local authority, as the case may be, shall be deemed to be the
occupier:]
[Provided further that] in the case of a ship which is being repaired, or on which maintenance work is being
carried out, in a dry dock which is available for hire,—

(1) the owner of the dock shall be deemed to be the occupier for the purposes of any matter
provided for by or under—
(a) section 6, section 7, 4 [section 7A, section 7B,] section 11 or section 12;
(b) section 17, in so far as it relates to the providing and maintenance of sufficient and suitable lighting in or
around the dock;
(c) section 18, section 19, section 42, section 46, section 47 or section 49, in relation to the workers employed
on such repair or maintenance;

(2) the owner of the ship or his agent or master or other officer-in-charge of the ship or any person who
contracts with such owner, agent or master or other officer-in-charge to carry out the repair or maintenance
work shall be deemed to be the occupier for the purposes of any matter provided for by or under section 13,
section 14, section 16 or section 17 (save as otherwise provided in this proviso) or Chapter IV (except section
27) or section 43, section 44 or section 45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or section
108, section 109 or section 110, in relation to—
(a) the workers employed directly by him, or by or through any agency; and
(b) the machinery, plant or premises in use for the purpose of carrying out such repair or maintenance work by
such owner, agent, master or other officer-in-charge or person;

(p) ―prescribed‖ means prescribed by rules made by the State Government under this Act;
(r) where work of the same kind is carried out by two or more sets of workers working during different
periods of the day, each of such sets is called a 9 [―group‖ or ―relay‖] and each of such periods is called a
―shift‖.
3. References to time of day.—In this Act references to time of day are references to Indian Standard Time,
being five and a half hours ahead of Greenwich Mean Time: Provided that for any area in which Indian

5
Standard Time is not ordinarily observed the State
Government may make rules—

(a) specifying the area,

(b) defining the local mean time ordinarily observed therein, and
(c) permitting such time to be observed in all or any of the factories situated in the area.
4. Power to declare different departments to be separate factories or two or more factories to be a single
factory.—The State Government may, 2 [on its own or] on an application made in this behalf by an occupier,
direct, by an order in writing 2 [and subject to such conditions as it may deem fit that for all or any of the
purposes of this Act different departments or branches of a factory of the occupier specified in the application
shall be treated as separate factories or that two or more factories of the occupier specified in the application
shall be treated as a single factory:
[Provided that no order under this section shall be made by the State Government on its own motion unless an
opportunity of being heard is given to the occupier.]
5. Power to exempt during public emergency.—In any case of public emergency the State Government may,
by notification in the Official Gazette, exempt any factory or class or description of factories from all or any of
the provisions of this Act 4 [except section 67] for such period and subject to such conditions as it may think
fit:
Provided that no such notification shall be made for a period exceeding three months at a time.

[Explanation.—For the purposes of this section ―public emergency‖ means a grave emergency whereby the
security of India or of any part of the territory thereof is threatened, whether by war or external aggression or
internal disturbance.]
6. Approval, licensing and registration of factories.—(1) The State Government may make rules— [(a)
requiring, for the purposes of this Act, the submission of plans of any class or description of
factories to the Chief Inspector or the State Government;]

[(aa)] requiring, the previous permission in writing of the State Government or the Chief Inspector to be
obtained for the site on which the factory is to be situated and for the construction or extension of any factory
or class or description of factories;
(b) requiring for the purpose of considering applications for such permission the submission of plans and
specifications;
6
(c) prescribing the nature of such plans and specifications and by whom they shall be certified;
(d) requiring the registration and licensing of factories or any class or description of factories, and prescribing
the fees payable for such registration and licensing and for the renewal of licences;
(e) requiring that no licence shall be granted or renewed unless the notice specified in section 7 has been
given.
(2) If on an application for permission referred to in 8 [clause (aa)] of sub-section (1) accompanied by the
plans and specifications required by the rules made under clause (b) of that sub-section, sent to the State
Government or Chief Inspector by registered post, no order is communicated to the applicant within three
months from the date on which it is so sent, the permission applied for in the said application shall be deemed
to have been granted.

CHAPTER II
THE INSPECTING STAFF
[7A. General duties of the occupier.—(1) Every occupier shall ensure, so far as is reasonably practicable, the
health, safety and welfare of all workers while they are at work in the factory.
(2) Without prejudice to the generality of the provisions of sub-section (1), the matters to which such duty
extends, shall include—
(a) the provision and maintenance of plant and systems of work in the factory that are safe and without risks to
health;
(b) the arrangements in the factory for ensuring safety and absence of risks to health in connection with the
use, handling, storage and transport of articles and substances;
(c) the provisions of such information, instruction, training and supervision as are necessary to ensure the
health and safety of all workers at work;
(d) the maintenance of all places of work in the factory in a condition that is safe and without risks to health
and the provision and maintenance of such means of access to, and egress from, such places as are safe and
without such risks;
(e) the provision, maintenance or monitoring of such working environment in the factory for the workers that
is safe, without risks to health and adequate as regards facilities and arrangements for their welfare at work.
(3) Except in such cases as may be prescribed, every occupier shall prepare, and, as often as may be
appropriate, revise, a written statement of his general policy with respect to the health and safety of the
workers at work and the organisation and arrangements for the time being in force for carrying out that
policy, and to bring the statement and any revision thereof to the notice of all the workers in such manner as

7
may be prescribed.
7B. General duties of manufacturers, etc., as regards articles and substances for use in factories.—(1) Every
person who designs, manufactures, imports or supplies any article for use in any factory, shall—
(a) ensure, so far as is reasonably practicable, that the article is so designed and constructed as to be safe and
without risks to the health of the workers when properly used;
(b) carry out or arrange for the carrying out of such tests and examination as may be considered necessary for
the effective implementation of the provisions of clause (a);
(c) take such steps as may be necessary to ensure that adequate information will be available—
(i) in connection with the use of the article in any factory;
(ii) about the use for which it is designed and tested; and
(iii) about any conditions necessary to ensure that the article, when put to such use, will be safe, and without
risks to the health of the workers:
Provided that where an article is designed or manufactured outside India, it shall be obligatory on the part of
the importer to see—
(a) that the article conforms to the same standards if such article is manufactured in India, or
(b) if the standards adopted in the country outside for the manufacture of such article is above the standards
adopted in India, that the article conforms to such standards.
(2) Every person, who undertakes to design or manufacture any article for use in any factory, may carry out or
arrange for the carrying out of necessary research with a view to the discovery and, so far as is reasonably
practicable, the elimination or minimisation of any risks to the health or safety of the workers to which the
design or article may give rise.

CHAPTER III
HEALTH
11. Cleanliness.—(1) Every factory shall be kept clean and free from effluvia arising from any drain, privy or
other nuisance, and in particular—
(a) accumulation of dirt and refuse shall be removed daily by sweeping or by any other effective method from
the floors and benches of workrooms and from staircases and passages, and disposed of in a suitable manner;
(b) the floor of every workroom shall be cleaned at least once in every week by washing, using disinfectant,
where necessary, or by some other effective method;
(c) where a floor is liable to become wet in the course of any manufacturing process to such extent as is
capable of being drained, effective means of drainage shall be provided and maintained;

8
(d) all inside walls and partitions, all ceilings or tops of rooms and all walls, sides and tops of passages and
staircases shall—
(i) where they are 2 [painted otherwise than with washable water-paint] or varnished, be repainted or
revarnished at least once in every period of five years;
12. Disposal of wastes and effluents.—3
[(1) Effective arrangements shall be made in every factory for the treatment of wastes and effluents due to the
manufacturing process carried on therein, so as to
render them innocuous, and for their disposal.]
(2) The State Government may make rules prescribing the arrangements to be made under sub-section (1) or
requiring that the arrangements made in accordance with sub-section (1) shall be approved by such authority
as may be prescribed.
13. Ventilation and temperature.—(1) Effective and suitable provision shall be made in ever factory for
securing and maintaining in every workroom—
(a) adequate ventilation by the circulation of fresh air, and
(b) such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to
health;
14. Dust and fume.—(1) In every factory in which, by reason of the manufacturing process carried on, there is
given off any dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious
or offensive to the workers employed therein, or any dust in substantial quantities, effective measures shall be
taken to prevent its inhalation and accumulation in any workroom, and if any exhaust appliance is necessary
for this purpose, it shall be applied as near as possible to the point of origin of the dust, fume or other
impurity, and such point shall be enclosed so far as possible.

(2) In any factory no stationary internal combustion engine shall be operated unless the exhaust is conducted
into the open air, and no other internal combustion engine shall be operated in any room unless effective
measures have been taken to prevent such accumulation of fumes therefrom as are likely to be injurious to
workers employed in the room.

18. Drinking water.—(1) In every factory effective arrangements shall be made to provide and maintain at
suitable points conveniently situated for all workers employed therein a sufficient supply of wholesome
drinking water.

9
CHAPTER IV
SAFETY
21. Fencing of machinery.—(1) In every factory the following, namely:—
(i) every moving part of a prime mover and every flywheel connected to a prime mover, whether the prime
mover or flywheel is in the engine house or not;
(ii) the headrace and tailrace of every water-wheel and water turbine:
(iii) any part of a stock-bar which projects beyond the head stock of a lathe; and
(iv) unless they are in such position or of such construction as to be safe to every person employed in the
factory as they would be if they were securely fenced, the following, namely:—
(a) every part of an electric generator, a motor or rotary converter;
(b) every part of transmission machinery; and
(c) every dangerous part of any other machinery;
22. Work on or near machinery in motion.—(1)
[Where in any factory it becomes necessary to
examine any part of machinery referred to in section 21, while the machinery is in motion, or, as a result of
such examination, to carry out—
(a) in a case referred to in clause (i) of the proviso to sub-section (1) of section 21, lubrication or other
adjusting operation.
[CHAPTER IVA]
PROVISIONS RELATING TO HAZARDOUS PROCESSES
41A. Constitution of Site Appraisal Committee.—(1) The State Government may, for purposes of advising it
to consider applications for grant of permission for the initial location of a factory involving a hazardous
process or for the expansion of an such factory, appoint a Site Appraisal Committee consisting of—
(a) the Chief Inspector of the State who shall be its Chairman;
(b) a representative of the Central Board for the Prevention and Control of Water Pollution appointed by the
Central Government under section 3 of the Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974);
(c) a representative of the Central Board for the Prevention and Control of Air Pollution referred to in section
3 of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981);
(d) a representative of the State Board appointed under section 4 of the Water (Prevention and Control of
Pollution) Act, 1974 (6 of 1974);
(e) a representative of the State Board for the Prevention and Control of Air Pollution referred to in section 5

10
of the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981);
(f) a representative of the Department of Environment in the State;
(g) a representative of the Meteorological Department of the Government of India;
(h) an expert in the field of occupational health; and

11
(i) a representative of the Town Planning Department of the State Government, and not more than five other
members who may be co-opted by the State Government who shall be—
(i) a scientist having specialised knowledge of the hazardous process which will be involved in the factory,
(ii) a representative of the local authority within whose jurisdiction the factory is to be established, and
(iii) not more than three other persons as deemed fit by the State Government.

CHAPTER V

WELFARE

42. Washing facilities.—(1) In every factory-

(a) adequate and suitable facilities for washing shall be provided and maintained for the use of the

workers therein;

(b) separate and adequately screened facilities shall be provided for the use of male and female workers;

(c) such facilities shall be conveniently accessible and shall be kept clean.

The State Government may, in respect of any factory or class or description of factories or of any
manufacturing process, prescribe standards of adequate and suitable facilities for washing.

43. Facilities for storing and drying clothing.—The State Government may, in respect of any factory or class
or description of factories, make rules requiring the provision therein of suitable places for keeping clothing
not worn daring working hours and for the drying of wet clothing.

44. Facilities for sitting.—(1) In every factory suitable arrangements for sitting shall be provided and
maintained for all workers obliged to work in a standing position, in order that they may take advantage of any
opportunities for rest which may occur in the course of their work.

(2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in a particular manufacturing
process or working in a particular room are able to do their work efficiently in a sitting position, he may, by
order in writing, require the occupier of the factory to provide before a specified date such seating
arrangements as may be practicable for all workers so engaged or working.

12
(3) The State Government may, by notification in the Official Gazette, declare that the provisions of sub-
section (1) shall not apply to any specified factory or class or description of factories or to any specified
manufacturing process.

45. First-aid appliances.—(1) There shall in every factory be provided and maintained so as to be readily
accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and
the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one
hundred and fifty workers ordinarily employed 1[at any one time] in the factory.

[(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.

13
(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person 3[who holds a
certificate in first-aid treatment recognised by the State Government] and who shall always be readily
available during the working hours of the factory.]

CHAPTER VI

WORKING HOURS OF ADULTS

51. Weekly hours.

52. Weekly holidays.

53. Compensatory holidays.

54. Daily hours.

55. Intervals for rest.

56. Spread over.

57. Night shifts.

58. Prohibition of overlapping shifts.

59. Extra wages for overtime.

60. Restriction on double employment.

61. Notice of periods of work for adults.

62. Register of adult workers.

63. Hours of work to correspond with notice under section 61 and register under section 62.

64. Power to make exempting rules.

65. Power to make exempting orders.

14
66. Further restrictions on employment of women.

CHAPTER VII

EMPLOYMENT OF YOUNG PERSONS

67. Prohibition of employment of young children.

68. Non-adult workers to carry tokens.

69. Certificates of fitness.

70. Effect of certificate of fitness granted to adolescent.

71. Working hours for children.

72. Notice of periods of work for children.

73. Register of child workers.

74. Hours of work to correspond with notice under section 72 and register under section 73.

75. Power to require medical examination.

76. Power to make rules.

77. Certain other provisions of law not barred.

CHAPTER VIII

ANNUAL LEAVE WITH WAGES

SECTIONS

78. Application of Chapter.

79. Annual leave with wages.

80. Wages during leave period.

15
81. Payment in advance in certain cases.

82. Mode of recovery of unpaid wages.

83. Power to make rules.

84. Power to exempt factories.

CHAPTER IX

SPECIAL PROVISIONS

85. Power to apply the Act to certain premises.

86. Power to exempt public institutions.

87. Dangerous operations.

87A. Power to prohibit employment on account of serious hazard.

88. Notice of certain accidents.

88A. Notice of certain dangerous occurrences.

89. Notice of certain diseases.

90. Power to direct enquiry into cases of accident or disease.

91. Power to take samples.

91A. Safety and occupational health surveys.

16
CHAPTER X

PENALTIES AND PROCEDURE

92. General penalty for offences.—Save as is otherwise expressly provided in this Act and subject to the
provisions of section 93 , if in, or in respect of, any factory there is any contravention of any of the provisions
of this Act or of any rules made the reunder or of any order in writing given thereunder, the occupier and
manager of the factory shall each be guilty of an offence and punishable with imprisonment for a term which
may extend to [two years] or with fine which may extend to [one lakh rupees] or with both, and if the
contravention is continued after conviction, with a further fine which may extend to 4 [one thousand rupees]
for each day on which the contravention is so continued:

[Provided that where contravention of any of the provisions of Chapter IV or any rule made thereunder or
under section 87 has resulted in an accident causing death or serious bodily injury, the fine shall not be less
than 6 [twenty-five thousand rupees] in the case of an accident causing death, and [five thousand rupees] in
the case of an accident causing serious bodily injury.

Explanation.—In this section and in section 94 ―serious bodily injury‖ means an injury which involves, or in
all probability will involve, the permanent loss of the use of, or permanent injury to, any limb or the
permanent loss of, or injury to, sight or hearing, or the fracture of any bone, but shall not include, the fracture
of bone or joint (not being fracture of more than one bone or joint) of any phalanges of the hand or foot.]

[93. Liability of owner of premises in certain circumstances.—(1) Where in any premises separate buildings
are leased to different occupiers for use as separate factories, the owner of the premises shall be responsible
for the provision and maintenance of common facilities and services, such as approach roads, drainage, water
supply, lighting and sanitation

17
(2) The Chief Inspector shall have, subject to the control of the State Government, power to issue orders to the
owner of the premises in respect of the carrying out of the provisions of sub-section (1).

(3) Where is any premises, independent or self-containted, floors or flats are leased to different occupiers for
use as separate factories, the owner of the premises shall be liable as if he were the occupier or manager of a
factory, for any contravention of the provisions of this Act in respect of—

(i) latrines, urinals and washing facilities in so far as the maintenance of the common supply of water for these
purposes is concerned;

(ii) fencing of machinery and plant belonging to the owner and not specifically entrusted to the custody or use
of an occupier;

18
THE FACTORIES (AMENDMENT BILL):

Factories Act is a labour legislation that has existed since late 19th Century and was initially enforced
to keep a check on the condition of Industrial workers

. Its prime objective was to protect the workers

employed in factories against industrial and occupational hazards. It focused on regulating the working
hours, weekly off, provisions regarding ladies and children. It imposes upon the owners and occupiers
Obligations to protect the workers. It was amended in 1911, 1923, 1935 and 1987. But the important
Amendments were made in 1948, which included safety of working place & machinery, health
provision working hours, weekly off, paid leave, etc. It came into force on 1.4.1949 and is applicable
to whole of India including Jammu and Kashmir. The last amendment to the Factories Act, 1948 was
made in the year 1987, wherein a separate Chapter was inserted relating to the hazardous process.
However, a comprehensive Factories (Amendment) Bill, 2014 including the amendments of sections
64 and 65 of the Act, was introduced in Lok Sabha on 7th August 2014. The said Bill was referred to
the Department-related Parliamentary Standing Committee on Labour for examination and report,
which presented its Report on the said Bill on 22nd December 2014 to Parliament, which is under
examination2
.
The Factories (Amendment) Bill, 2016 was introduced in Lok Sabha on August 10, 2016 by the
Minister of Labour and Employment on the ground that consideration and passing of the 2014 Bill in
Parliament may take some more time, with a view to boost the manufacturing sector and to facilitate
Ease of Doing Business so as to enhance employment opportunities. The Amendment Bill 2016 was
passed in Lok Sabha. Now Government is planning a fresh proposal to push amendments to the
Factories Act to create new jobs and make businesses easy to grow3
.
The string of amendments proposed by the union government to various sections of the Factories Act
have been endorsed by the Ministry to deliver on its promise to vastly improve India‘s position in the
World Bank‘s Ease of Doing Business Index. But the proposed amendments go about this task by
decreasing regulatory mechanisms that protect workers‘ rights, safety and health. This would only lead
to a competitive easing of norms to facilitate investment without protecting the further erosion of
labour rights.
19
FIRST CASE STUDY

1The first cotton textile factory was set up at Bombay as early as 1854. By 1870 a large number of
factories were setup at Bombay, Nagpur, Kanpur &Madras. The first Iron & Steelwork started at Bihar in
1873. Jute spinning mill were started at Rishra in 1855. By 1881 there were 5000 power looms at work in
Bengal. In 1870, Bally Paper mills were setup at Hoogly & several tanning & leather factories were also setup
at Kanpur which led to factory establishment existence in India. This brought factories evils such as
employment of women & children at tender age, excessive hours of work & hazardous & insanitary working
conditions. Great need for protective labour legislations to fight the conditions of workers (especially women
& children) was felt as early as 1850, but nothing was done by British Government (By this a series of
Factories Act was already passed in Great Britain).

20
Occasional notes of dissatisfaction were raised by philanthropist which were led by Sorabjee Shahpurjee
Bengali. In 1878, Sasipad Bannerjee laid the foundation of Bara Bazar organization for the welfare of jute mill
workers. There is also a record of a strike in Nagpur Empress Mill in 1877. Textile mills in India began
competing with those many in Lancashire (Great Britain). As a result mill owners at Lancashire were worried.
They alleged that inferior labour standards prevailed in Indian mills resulted in lower production cost & hence
increased the competitive power of Indian Textile Mills. So they demanded in order to preserve competitive
power increase the cost of production of mills by raising the labour standards. Thus protective labour
legislations was embodied in Factory Act 1881. Thus joint efforts of philanthropist, social workers in India &
Lancashire manufacturers in Great Britain.

MAJOR PROVISIONS

The Factories Act (Amendment) Bill, 2016 and 2014 amends the Factories Act, 1948. The Bill amends
provisions related to overtime hours of work and the employment threshold limit of the factories respectively.
The following are some of the major changes introduced by the Bill and other amendments that government
planning to introduce.

• Power to make rules on various matters (Amendment of Section 2): The Act as it stands today permits only
the state government to prescribe rules on a range of matters, including double employment, details of adult
workers to be included in the factory‘s register, conditions related to exemptions to certain workers, etc. The
Bill gives such rule making powers to the central government as well.

• Powers to make rules for exemptions to workers (Amendment of Section 64): Under the Act, the state
government may make rules to (i) define persons who hold management or confidential positions; and (ii)
exempt certain types of adult workers (e.g. those engaged for urgent repairs) from fixed working hours,
periods of rest, etc. The Bill gives such rule making powers to both, the central and state governments.

• Limitation of application of Rules for exemptions to workers (Amendment of Sub-section 5 of Section 64):
Under the Act, such rules will not apply for more than five years. The Bill of 2016 modifies this provision to
state that the five-year limitation will not apply to rules made after the enactment of this Bill.

• Overtime hours of work in a quarter (Amendment of subsection 4 in clause iv of Section64): The Act permits
the state government to make rules related to the regulation of overtime hours of work in some specific
condition up to 50 hours for a quarter. The specific conditions include urgent repairs, preparatory or
complementary work which must necessarily be carried on outside the

limits laid down for the general working of the factory, work which is necessarily so intermittent that intervals

21
during which they do not work while on duty, any work which for technical reasons must be carried on
continuously, making or supplying articles of prime necessity which must be made or supplied every day, a
manufacturing process which cannot be carried on except during fixed seasons, a manufacturing process,
which cannot be carried on except at times dependent on the irregular action of natural forces, work engaged
in engine-rooms of boiler-houses or in attending to powerplant or transmission machinery, engaged in the
loading or unloading of railway wagons or lorries or trucks and in any work, which is notified by the State
Government in the Official Gazette as a work of national importance.

However, the total number of hours of overtime must not exceed 50 hours for a quarter. The Bill raises this
limit from 50 hours to 100 hours. Rules in this regard may be prescribed by the central government as well.
• Overtime hours if the factory has higher workload (Amendment of Section 65): The Act enables the state
government to permit adult workers in a factory to work overtime hours if the factory has an exceptional
workload. Further, the total number of hours of overtime work in a quarter must not exceed 75. The Bill
permits the central or state government to raise this limit to 115 hours in a quarter.

• Overtime in public interest (Amendment of Section 65, inserted after sub section 3 and before the
Explanation): The Bill introduces a provision, which permits the central or state government to extend the
115-hour limit to 125 hours. It may do so because of public interest.

• State Government will have the power to double Employment threshold limits for factories: In a fresh
proposal circulated on 14th February, 2017, the labour ministry has stated that state government will have the
power to double employment threshold limits from 10 workers to 20 workers in units using power for
manufacturing and from 20 workers to 40 workers in units that do not use power for manufacturing, except in
factories with ―hazardous processes‖. Moreover, according to the fresh amendment, state governments could
decide the employment threshold for a unit to be considered a factory under the Factories Act by simply
issuing a notification to this regard.
CONCERNS AND CRITICISMS

The Factories Act, 1948 has been enacted to consolidate and amend the law regulating the workers working in
the factories. It extends to the whole of India and applies to every factory wherein 20 or more workers are
ordinarily employed. Since the aim and objectives of the Act are to safeguard the interest of workers and
protect them from exploitation, the Act prescribes certain standards with regard to safety, welfare and working
hours of workers, apart from other provisions. However, the Amendments of the Act are contradictory to the

22
key idea for which the Act actually exits. In this section some of the key criticisms of the Bill have been
highlighted.

• Diluting the Principal Objective of the Act: The Factories Act came into existence with the primary objective
of raising the labour standard and protecting them from exploitation. But the increase of over time limit is
contradictory and instead of improving the working conditions of labour it would even lead to some intense
health and social problems among the labour class. Although the Factories Act was initially enacted by the
British Government to protect the interests of British employers as Indian textile goods offered stiff
competition to British textiles in the export market and hence in order to make Indian labour costlier the
Factories Act was first introduced in 1881. Thus India received the first stipulation of eight hours of work, the
abolition of child labour, and the restriction of women in night employment, and the introduction of overtime
wages for work beyond eight hours. Although the real motivation of this measure was undoubtedly
protectionist, the impact of this measure was clearly welfarist Since then the Factories Act was amended many
times but the amendment after the independent India was enacted as an Act to protect the interest of the
labour class in independent India. But the proposed amendment is inconsistent to the motive of the Act for
which it exists.

• Contradictory and overlapping Overtime limits: The Section 64, sub-section -3 of the Act mentions that the
total hours of work including overtime should not exceed 10 hours in a day and 60 hours in a week. Moreover,
the Act also mentions that the total normal hours of work excluding overtime, in a week should be 48 hours.
So, it will be 12 hours of overtime in a week assuming 60 hours of work including overtime, which will be 48
hours in a month and 144 hours in a quarter [(12*4)*3=144]. However, the Bill has increased the limit
maximum up to 125. In case of any future issues, neither the Bill nor the Act mention which calculation will
be used therefore it allows the employers to increase the overtime limits up to 144 hours in a quarter.

• Public Interest not defined: In section 65 after sub-section (3) and before the explanation, a provision will be
inserted, namely, "Provided that the Central Government or the State Government or the Chief Inspector with
the prior approval of the State Government, as the case may be, by order, further extend the total number of
hours of overtime work in any quarter up to one hundred and twenty-five in the public interest.". However,
neither the Act nor the Bill defines what ―public interest‖ is. Therefore, it allows the employers to influence
the working time limits for their own convenience in running the business.

• Limitation in the Exemption Rule is not defined: In section 64 of the Act, the exemptions under the Act
23
should remain for five years but the new Bill removed the five years limit without mentioning the reason for
this. Even the Act itself did not mention the reason of the five years limitation over the exemption rule under
section 64 of the Act.

• Industrial Demand for work on ―Urgent Basis‖ is ambiguous: It is mentioned in the Bill that ―The need for
increasing the total number of hours of work on overtime in a quarter is based on the demand from industries
so that factories can carry out the work on urgent basis.‖ Yet, the word urgent is already mentioned in Section
64 of the Act and also in Section 64 and Section 65 some specific conditions are mentioned when the factories
can increase the overtime limit. But the Amendment Bill does not mention the justification of extending
overtime up to a different limit on ―urgent basis‖.

• Contradictory to the ILO Recommendation: The ILO Hours of Work (Industry) Convention (No.1) of 1919
introduced a maximum standard working time of 48 hours per week and eight hours per day as an
international norm. In several exceptional cases, working time is allowed to exceed these limits, as long as
daily working time remains not higher than ten hours, and weekly working time not higher than 56 hours5.
But any of the ILO convention related to hours of work do not prescribe any requirements as to policies or
measures concerning hours of work, nor do they mention any such policies or measures. Nevertheless, certain
guidance as to the formulation and implementation of policies on hours of work can be drawn from the
Reduction of Hours of Work Recommendation, 1962 (No. 116)6

. The reduction of hours of work is viewed as a tool for achieving two major goals:
(i) Creating additional workplaces; and
(ii) achieving a balance between the work and family lives of employees.7
But the present amendment of doubling over time in Factories Act 1948 is completely contradictory to the
ILO recommendation of 1962.
Moreover in other countries like the United States, although there is no overtime limit, but the normal hours of
work is 40 hours a week according to the Fair Labour Standard Act (FLSA) 8.
In the United Kingdom, according to the Working Time Regulation 1998 Act, the total hours of work
Including the overtime in a week should not exceed 48 hours9. In Brazil, according to section 59 of the
Consolidation of Labour Laws, the overtime should not exceed two hours in a day and according to section 41
of labour law in China, it should not exceed three hours a day.

• Health and Social effects: Piloting the Bill, Labour Minister said the changes in the law would enable
24
workers to "work more and earn more"10. The purpose of earning the livelihood is to fulfill the necessities of
life and having a basic standard of living. Livelihood is the means to achieve the end in terms of comfortable
life for the worker and his/her family. Only the achieved states are in themselves valuable, not the
opportunities, which are valued only as means to the end of reaching valuable states. But the earning from the
overtime work will affect the health and social life of the workers. Doubling the over time, which is in excess
of normal working hours of eight to nine hours is certainly not justifiable from the perspective of the health of
the workers. Moreover, working overtime could result in increased consumption of alcohol, tobacco, obesity
and depression, which might result in a major social issue. It will also have an effect on the family life and
social obligation of the workers. According to an ILO report on Decent and Safe work published in 2002, the
cardiovascular disease is one of the prime causes of work-related death, and first and important factor of these
diseases is night work and long hours of work11.
Karoshi is a Japanese word meaning death from overwork. This term has been used since the 1970s. In 1978
there was a report on 17 karoshi cases at the 51st annual meeting of the Japan Association of Industrial Health.
Karoshi is not a pure medical term but a socio-medical term that refers to fatalities or associated work
disability due to cardiovascular attacks (such as brain strokes, myocardial infarction or acute cardiac failure)
aggravated by a heavy workload and long working hours. The phenomenon was first identified in Japan, and
the word is now adopted internationally. Karoshi has become an important social problem in Japan12.
However, Article 36 of the Japanese Labor law mentions the overtime limit of 5 hours per day, 45 hours per
quarter and 360 hours per years.

• Increase Unemployment: According to a UN labour report, unemployment in India is projected to witness

marginal between 2017 and 2018 signalling stagnation in job creation13. The report also added that the
unemployment in India is projected to increase from 17.7 million last year to 17.8 million in 2017 and 18
million next year, which in percentage terms will remain at 3.4 per cent in 2017-18. The said Bill was
defended on the ground that it would facilitate an increase in employment generation in the manufacturing
sector. But increasing overtime will in no way reduce the unemployment rate. It will further deteriorate the
unemployment situation. The urgency of increasing overtime only proves the urgency of bringing a higher
level of dynamism to increase production at the cost of labourers whether employed or unemployed. Because
as mentioned earlier
the proposed changes in Bill will affect the welfare of the workers employed in these industries and also at the
same time it will result in increased unemployment.

• Business Friendly Policy at the Cost of Labour: Most of the reforms of labour laws in India are the most
25
focused official initiative for Ease of Doing Business. It seems business friendliness is measured only in
labour front. According to the International Trade Union Confederation (ITUC), India is among the 10 worst
countries for labour rights in 2016 in terms of the Global Rights Index. (GRI)14. Although Government is
working comprehensively on the Ease of Doing Business index, it ignores the worsening labour rights
violations records. It is not surprising that the conventional democratic space for trade unions is narrowing and
a sense of insecurity is enveloping the working class, the example of which is the Government‘s restriction on
the Congress-affiliated trade union, Indian National Trade Union Congress (INTUC), from participating in
any tripartite meetings, be it labour law reforms or routine wage negotiations on both national and
international platforms15. The need for increasing the total number of hours of work on overtime in a quarter
is based on a
demand from industry so that factories can carry out work without any interruption whenever they want.

• Increasing threshold limit of the number of workers employed in defining a factory will remarkably decrease
coverage of the Act: The Factories Act, 1948, defines a factory based on the number of workers it employs. If
a unit uses power for manufacturing, it is considered a factory if it employs more than 10 workers in a year.
Units that do not use power for manufacturing are identified as a factory only if they employ at least 20
workers. In its amendment Bill, introduced in Parliament on August 7, 2014, the Government had proposed
changing the original Act to double the threshold level of employment from 10 workers to at least 20 workers
in case of factories using power, and from 20 workers to 40 workers in case of factories not using power for
manufacturing. This meant that units employing less than these numbers would no longer have to follow the
standards set out in the Factories Act. As data from the Annual Survey of Industries in Table 1 shows more
than one lakh (or 62%), of the 1.90 lakh factories in 2014-15 employed less than 30 workers which employ a
total of 9 lakh workers (or 8.55 percent) in India.
Of the total, 42 percent of all units employed less than 14 workers, while 9.11 percent had 15-19 workers, and
10.7 percent of the total units had 20-29 workers employed in the previous year. Based on this data which was
presented by
central unions, the Parliamentary Standing Committee on Labour rejected the proposal to increase threshold
defining limits, in its 116-page report16 presented on December 23, 2014. The report said, ―More than 70
percent of the factory establishments in the Country will be out of the coverage of the Factories Act and
workers will be at the mercy of employers in every aspect of their service conditions, rights and protective
provisions laid down under the Act.‖

26
 CHAPTER-2 (OBJECTIVES AND IMPORTANCE)

Objective of Factories Act, 1948

The main objectives of the Indian Factories Act, 1948 are to regulate the working conditions in factories, to
regulate health, safety welfare, and annual leave and enact special provision in respect of young persons,
women and children who work in the factories.

1. Working Hours:
According to the provision of working hours of adults, no adult worker shall be required or allowed to work in
a factory for more than 48 hours in a week. There should be a weekly holiday.

2. Health:
For protecting the health of workers, the Act lays down that every factory shall be kept clean and all necessary
precautions shall be taken in this regard. The factories should have proper drainage system, adequate lighting,
ventilation, temperature etc.
Adequate arrangements for drinking water should be made. Sufficient latrine and urinals should be provided at
convenient places. These should be easily accessible to workers and must be kept cleaned.

3. Safety:
In order to provide safety to the workers, the Act provides that the machinery should be fenced, no young
person shall work at any dangerous machine, in confined spaces, there should be provision for manholes of
adequate size so that in case of emergency the workers can escape.

4. Welfare:
For the welfare of the workers, the Act provides that in every factory adequate and suitable facilities for
washing should be provided and maintained for the use of workers.
Facilities for storing and drying clothing, facilities for sitting, first-aid appliances, shelters, rest rooms‘ and
lunch rooms, crèches, should be there.

5. Penalties:-
The provisions of The Factories Act, 1948, or any rules made under the Act, or any order given in writing
under the Act is violated, it is treated as an offence. The following penalties can be imposed:-
(a) Imprisonment for a term which may extend to one year;
27
(b) Fine which may extend to one lakh rupees; or
(c) Both fine and imprisonment.
If a worker misuses an appliance related to welfare, safety and health of workers, or in relation to discharge of
his duties, he can be imposed a penalty of Rs. 500/-.

Why was the Factory Act important?

In 1833 the Government passed a Factory Act to improve conditions for children working in factories. Young
children were working very long hours in workplaces where conditions were often terrible. The basic act was
as follows: no child workers under nine years of age.
What are the important features of Factories Act 1948 only in relation to industrial safety?
only. Every Occupier should ensure, so far is reasonably practicable the health, safety and welfare of all
workers while they are at work in the factory. the provisions and maintenance of plant and systems of work in
the factory that are safe and without risks to health;

The main objective of the Act is not only to ensure adequate safety measures but also to promote health and
welfare of the workers employed in factories as well as to prevent haphazard growth of factories.
What did the Factory Act do?
In 1833 the Government passed a Factory Act to improve conditions for children working in factories. ...
Employers must have an age certificate for their child workers. Children of 9-13 years to work no more than
nine hours a day. Children of 13-18 years to work no more than 12 hours a day.
OTHER OBJECTIVES OF THE ACT ARE-
The other objectives of this act are:
To protect human beings from unduly long hours of daily strain or manual labor.
To regulate working conditions in the factory.
To provide for prevention of accidents.
To maintain effective supervision by state government by appointment of inspecting staff.
REGULATION OF REGISTRATION, APPROVAL AND LICENSING OF FACTORIES
To regulate the unnecessary growth of the factories, the authorities set up the proper procedure for licensing of
the factories. The authorities approve the plans for the factory set up after considering the layout of factory
and ensuring that its set up is not against the public policy.

28
TO MANDATE THE HEALTH AND WELFARE PROVISIONS
The object of this act is to make the factories to follow the provisions regarding the health and welfare of the
workers. The sound health of the persons working in the factory is the prime requirement of the efficient
working process. Also the welfare of the workers should be taken care by providing them facilities of
washrooms, canteens etc.

TO SET UP THE INSPECTING STAFF

Under this act, the team of inspecting staff consisting of chief inspector, additional chief inspector, joint chief
inspector, deputy chief inspector, inspector and certifying surgeon is appointed. This is done to ensure the
implementation of the provisions of this act to the factories safely.

TO REGULATE THE APPOINTMENT OF WORKERS

The women workers and young persons are appointed in the factories. This act aims at setting their welfare
and safety measures, their working hours and ensure safe working environment.

29
 CHAPTER-3 (RESEARCH METHODOLOGY OF THE REPORT)

Research methodology is the specific procedures or techniques used to identify, select, process, and analyze
information about a topic. In a research paper, the methodology section allows the reader to critically evaluate
a study's overall validity and reliability.

DATA COLLECTION
Data is collected from yearly report published by labour health and welfare ministry.
Some data is derived from reports of various surveys organized by government of India and some other pvt.
Organizations.
Some of the data is also derived from various sites and links on the media or internet.
Some data is collected from the reports and analysis of various researches held for health and safety of
labours.

PRIMARY DATA
Primary data is a type of data that is collected by researchers directly from main sources through interviews,
surveys, experiments, etc. Primary data are usually collected from the source—where the data originally
originates from and are regarded as the best kind of data in research.

PRIMARY DATA DERIVED FROM-

The primary data of the report is derived from reports of various researches interviews and also collected from
fresh surveys and analysis.

SECONDARY DATA
Secondary data refers to data that is collected by someone other than the primary user. Common sources
of secondary data for social science include censuses, information collected by government departments,
organizational records and data that was originally collected for other research purposes.

SECONDARY DATA DERIVED FROM-

Secondary data of the report is derived from various newspapers, general magazines , articles and public
reports.
30
EXECUTION OF DATA
The data collected is properly checked and errors are removed
Only relevant data is sorted out

INTERPRETATION OF DATA
Data will be interpreted accordingly for preparation of report and presentation

PREPARATION OF REPORT
Report is prepared on the basis of generalization and interpretation using standard format provided by the
guide.
Rough draft report will be submitted to the guide for corrections
Final report will be prepared after making corrections in rough draft

31
LIMITATIONS OF THE STUDTY
Scope of study is limited to work area.

REFRENCES
The Factories Act, 1948,
http://dgms.gov.in/writereaddata/UploadFile/Factories%20Act,%201948.pdf.Accessed on 12/02/2017
The Indian Express (October, 16, 2016) Death from overwork: Japan‘s ‗karoshi‘ culture killing youth.
http://indianexpress.com/article/world/world-news/death- from-overwork-japans-karoshi-culturekilling-youth-
3094832/ Accessed on 10/02/2017
International Labour Office (2002) Introductory Report: Decent Work – Safe Work.
http://www.ibram.org.br/sites/700/784/00001030.pdf. Accessed on 9/02/2017
International Labour Office (2005) General Survey of the reports concerning the Hours of Work
(Industry) Convention, 1919 (No. 1), and the Hours of Work (Commerce and Offices) Convention,
1930 (No. 30). http://www.ilo.org/public/english/standards/relm/ilc/ilc93/pdf/rep- iii-1b.pdf. Accessed
on 9/02/2017
R116 - Reduction of Hours of Work Recommendation, 1962 (No. 116)
http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:::NO:12100:P12100_ILO_CODE:R1
16:NO. Accessed on 09/02/2017
C047 - Forty-Hour Week Convention, 1935 (No. 47).
http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:::NO:12100:P12100_ILO_CODE:C0
47:NO. Accessed on 09/02/2017
C030 - Hours of Work (Commerce and Offices) Convention, 1930 (No. 30).
http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXP UB:12100:::NO:12100:P12100_ILO_CODE:C0
30:NO. Accessed on 08/02/2017
C001 - Hours of Work (Industry) Convention, 1919 (No. 1).
http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:::NO:12100:P12100_ILO_CODE:C0
01:NO. Accessed on 08/02/2017
International labour Office (2004) Overtime . http://www.ilo.org/wcmsp5/groups/public/---
ed_protect/---protrav/---travail/documents/publication/wcms_170708.pdf. Accessed on 07/02/2017
Kr Shyam Sundar (23rd June, 2016) Business Friendly Policy at the Labour‘s Expense.
http://www.thehindubusinessline.com/opinion/businessfriendly-policy-at- laboursexpense/article8765213.ece.
Accessed on 24/02/2017
Trade Union oppose changes to Factories Act (14th February, 2017)
32
http://www.thehindu.com/business/Industry/Trade-unions-oppose-changes-to-
FactoriesAct/article17302663.ece Accessed on 24/02/2017
Anumeha Yadav (20th February, 2017) Month After Note Ban, Center Revives Labour Law that will
affect over 50% of Factories. https://scroll.in/article/829678/months-after-note-ban-centre-reviveschanges-to-
labour-law-that-will-affect-over-50-of- factories Accessed on 22nd February, 2017)

33
 (DATA ANALYSIS)

ACCORDING TO ANNUAL SURVEY OF INDUSTRIED 2019-20

Periodic Labour Force Survey (PLFS)

4.117 The nationwide Periodic Labour Force Survey (PLFS) was launched from April 2017. The objective of
PLFS is primarily two fold (i) to measure the labour force
indicators in the short time interval of three months for the urban areas only in the Current Weekly Status
(CWS) and (ii) to generate estimates of all important labour force parameters in both usual status (ps+ss) and
CWS annually for both rural and urban areas.
4.118 The data collection for PLFS in the field is being done through Computer Assisted Personnel
Interviewing (CAPI) Solution. The CAPI Solutions was developed
by NSO with technical assistance from World Bank for use in data collection for PLFS by using hand held IT
Devices in place of paper schedules. 4.119 The Annual Report of PLFS for 2017-18 and Quarterly Bulletin for
the quarter October – December 2018 were released on 31st May 2019. Quarterly Bulletin of PLFS for the
quarter January – March 2019 has also been released on 23rd November 2019.

Time Use Survey

4.120 NSS is conducting Time Use Survey during the period January 2019 to December 2019 for the first
time. The primary objective of Time Use Survey (TUS)
is to measure participation of men, women and other groups of persons in paid and unpaid activities. The
survey will be an important source of information on the time spent in unpaid care giving activities, unpaid
volunteer work, unpaid domestic service producing activities of the household members. This will also
provide information on time spent on learning, socializing, leisure activities, selfcare activities, etc. by the
household members.

Annual Survey of Industries (ASI)

4.120 The Annual Survey of Industries (ASI) is the principal source of industrial statistics in India. It provides
statistical information to assess and evaluate,
objectively and realistically, the changes in the growth, composition and structure of the organized
manufacturing sector comprising activities related to manufacturing
processes, repair services, generation, transmission, etc. of electricity, gas and water supply and cold storage.

34
The survey is statutory in nature under the Collection of
Statistics Act, 2008 (as amended in 2017) and the rules framed there under. 4.121 The ASI extends to the
entire country. The survey covers all factories registered
under sections 2m (i) and 2m (ii) of the Factories Act, 1948. The survey also covers bidi and cigar
manufacturing establishments registered under the Bidi and Cigar
Workers (Conditions of Employment) Act, 1966. All the electricity undertakings engaged in the generation,
transmission and distribution of electricity registered with the Central Electricity Authority (CEA) were
covered under ASI up to 1997-98 irrespective of their employment size. Certain services and activities like
cold storage,
water supply, repair of motor vehicles other consumer durables like watches, etc. are covered under the
survey. Defence establishments, oil storage and distribution
depots, restaurants, hotels, café and computer services and the technical training institutes are excluded from
the purview of this survey. The electricity undertakings registered with the CEA are not being covered under
ASI w.e.f. 1998-99
However, captive units not registered with CEA continue to be covered under ASI. 4.122 In addition to the
above, now the coverage of ASI has been extended beyond the purview of the section 2m (i) and 2m (ii) of the
Factories Act, 1948 and the Bidi & Cigar Workers (Conditions of Employment) Act, 1966 as recommended
by the Sub-Group on Sampling Design of ASI. For this purpose, Business Register of Enterprises (BRE)
prepared by the respective states and Directory of Establishments based on Sixth Economic Census would be
used by Industrial Statistics Wing (ISWing).
4.123 To start with the implementation of the augmented frame, units with 100 or more employees not
registered under Section 2m(i) and 2m(ii) of the Factories
Act, 1948 but included in the BRE of the respective states would be included in ASI frame. For this, BRE of
Andhra Pradesh (AP) was included in the frame of Andhra
Pradesh for ASI 2014-15, BRE of Manipur, Chattisgarh, Himachal Pradesh, Punjab,Uttar Pradesh, Tamil
Nadu and Rajasthan were included in the frame of respective
states for ASI 2015-16, and BRE of Gujarat, Karnataka, Kerala, Rajasthan, Telangana, and Uttar Pradesh were
included in the frame of respective states for ASI 2017-
18 after verification of such units by FOD. This is a significant departure from past practices and it is an
improvement in coverage of registered manufacturing sector.
4.124 The data collected through ASI relates to capital, employment and emoluments, consumption of fuel
and lubricants, raw materials and other input/
output, value added, labour turnover and other characteristics of factories/industrial establishments. Fieldwork
35
for central sample is carried out by the Field Operations
Division. The IS Wing processes the data and publishes the results.
State Participation in ASI
4.125 The State Directorates of Economics and Statistics (DESs) have been given necessary technical
assistance and training for the purposes of participation in ASI.
The participating States along with other desiring States have been provided with state sample list to take part
in ASI survey work. IS Wing of DPD has provided all the
survey and data processing instruments [sample list, schedule, instruction manual, data entry package (e-
schedule), validation rules, validation software, pooling methodology, etc.] to the states. Central sample unit
level data for respective states were also shared with the State DESs so as to enable them to generate district/
micro level estimates, if necessary, by augmenting samples. 4.126 Over the last few decades, there has been a
spurt in the growth of the number of registered factories and consequently in the number of units from which
data are to be collected and analyzed annually. The sample sizes in ASI were kept as 70,943;73,841 and
76,977 units during ASI 2015-16; ASI 2016-17 and ASI 2017-18 respectively. In ASI 2018-19, 78,138 units
comprising of 54,492 census units and 23,646 sample units have been selected for the survey. The field work
of ASI 2018-19 is in progress. All the schedules from ASI 2012-13 onwards have been canvassed through ASI
web-portal.
4.127 Final results of ASI 2016-17 (Volume I and Summary Results for FactorySector) have been released in
ASI web-portal within six months from the closure of the survey. Provisional results of ASI 2017-18 have
been released within three months from the completion of the field work. Since ASI 2009-10, Vol-I results
and Vol- II are freely available to users in electronic media and can be downloaded from Ministry‘s website
(www.mospi.gov.in).

36
 The comparative statements regarding the Principal Characteristics of Industries
as covered under ASI are given below:

Table-4.5

Characteristics Unit 2013-14 2014-15 2015-16 2016-17 2017-18 (P)

Factories Number 224576 230435 233116 234865 237684

Fixed Capital `Lakh 237371903 247445461 280964722 319038649 329341000

Productive Capital `Lakh 303640480 311529492 355017720 385346936 393752890

Invested Capital `Lakh 338455535 351396431 385309984 429625490 446846553

Workers Number 10444404 10755288 11136133 11662947 12224402

Employees Number 13462061 13808327 14227645 14840929 15546178

Wages to Workers `Lakh 12649644 14048488 15600116 17353716 19280076

Emoluments `Lakh 27241503 30741306 33975074 37516385 41835726

Total input `Lakh 549013952 571910956 558907407 589746374 660681736

Output `Lakh 655525116 688381205 686235375 726551423 808167115

Depreciation `Lakh 16976977 18954077 20079459 22213138 23672523

Net value added `Lakh 89534187 97516172 107248509 114591911 123812856

NFCF `Lakh 18396832 13405511 17879299 14696869 9433274

Net Income `Lakh 75152048 81228119 90165276 97221421 105924226

Rent paid `Lakh 1527272 1709361 1774760 1964321 2147363

Interest paid `Lakh 15485061 17286008 18213736 18940173 18768379

Profit `Lakh 43956552 46028299 51319338 53935285 58469673

ASI Web-Portal

Annual Survey of Industries Web-Portal was developed by Industrial Statistical

Wing, Kolkata, with the support of NIC for collection and compilation of ASI schedules. The
main objective of the portal is collection of ASI data at the source with built-in
validation which leads to data accuracy and time saving. The 24×7 availability in a
secured environment is an added advantage. The vision is to deliver ASI data in a timely,
transparent and reliable manner in a secured environment without any physical
movement of the schedules. The ASI web-portal was successfully launched for frame
updation, sample selection and e-compilation of ASI schedule from ASI 2012-13.

37
The details of projects in each category as on 1 st October 2019 is given in Table 7.1 below:

Frequency of the projects (as on 1st October 2019)

Table- 7.1

S.No. Sector No. Of Cost Cost No. Cost Cost

Major Original Anticipated Of Original Anticipated
Project (`In crore) (` In crore) MEG (`In crore) (` In crore)
s A
Projects

1 ATOMIC ENERGY 0 0.00 0.00 4 67120.00 80348.00

2 CIVIL AVIATION 11 4757.51 4884.44 2 3850.00 3850.00

3 COAL 91 38980.85 38260.09 16 66016.48 69715.09

4 FERTILISERS 5 1299.07 1310.72 0 0.00 0.00

HEALTH AND
5 FAMILY WELFARE 20 8129.23 8246.52 1 1351.00 1351.00

6 HEAVY INDUSTRY 0 0.00 0.00 1 1554.00 1554.00

INFORMATION AND
7 BROADCASTING 3 969.43 969.43 0 0.00 0.00

8 MINES 4 1538.62 1538.62 1 5540.00 5540.00

9 PETROLEUM 94 39033.73 39676.38 56 206905.35 214210.01

10 POWER 33 13260.97 13693.72 43 272525.71 345979.95

11 RAILWAYS 159 68428.38 79413.47 156 392689.00 584806.59

ROAD TRANSPORT
12 AND HIGHWAYS 707 290492.65 293389.47 149 219449.56 237782.08

13 SHIPPING AND PORTS 0 0.00 0.00 1 4200.00 5369.18

14 STEEL 3 846.89 846.89 6 25381.34 32638.34

15 TELECOMMUNICATIO 2 650.06 658.36 2 15445.17 26675.17

NS

16 URBAN 47 13795.84 14163.18 16 172867.22 179131.70

DEVELOPM ENT

17 WATER RESOURCES 1 233.57 233.57 1 10151.04 55548.87

TOTA 1,180 482,416.80 497,284.86 455 1,465,045.87 1,844,499.98

L

• As on 1st October 2019, 1635 projects with anticipated completion cost of

38
 `23, 41,784.84 crore was on the monitor of the Ministry. For the purpose of
monitoring, these projects have been categorised into two categories:

S. No. CATEGO No. of Anticipated

RY Projects Cost
(`In crore)
1 Mega (`1000 crore and above) 455
18,44,499.98
2 Major (`150 crore to less than `1000 crore) 1180
4,97,284.86
TOTAL 1635 23,41,784.84

39
 The projects are monitored on sectoral and geo-physical basis. The key financial
parameters of the monitored projects have been highlighted in the table 7.2:

Investment Scenario in Central Sector Projects across the States Table -

7.2
STATE WISE STATUS O F CENTRAL SECTO R PRO JECTS CO STING Rs 150 CRO RE AND ABO VE

(All Cost /Expenditure in Rs. crore)

NO O F COST COST CUMULATIVE
S.NO STATE
PRO JECTS ORIGINAL ANTICIPATED EXPENDITURE
1 A & N ISLANDS 9 2,786.01 2,893.59 445.12
2 ANDHRA PRADESH 74 1,19,083.46 1,68,703.11 47,161.36
3 ARUNACHAL PRADESH 40 21,795.08 40,754.39 21,939.38
4 ASSAM 48 26,216.03 31,003.54 14,762.42
5 BIHAR 94 90,608.62 1,27,798.63 62,907.83
6 CHHATISGARH 34 73,625.10 85,279.62 43,653.26
7 D & N HAVELI 1 6,086.08 5,842.31 4,784.88
8 DELHI 25 55,985.34 63,868.57 41,784.89
9 GOA 10 5,325.87 5,336.30 1,812.94
10 GUJARAT 56 64,665.47 71,921.79 47,175.99
11 HARYANA 40 30,880.96 33,054.71 15,054.41
12 HIMACHAL PRADESH 13 18,053.17 28,163.70 12,407.23
13 JAMMU AND KASHMIR 13 20,822.23 46,498.48 34,430.06
14 JHARKHAND 47 62,036.07 67,344.06 26,929.59
15 KARNATAKA 63 73,084.28 76,598.88 20,826.44
16 KERALA 20 36,309.60 39,755.52 14,186.92
17 MADHYA PRADESH 78 86,555.71 93,301.25 43,303.29
18 MAHARASHTRA 258 2,36,169.1 2,46,235.56 98,553.38
19 MANIPUR 5 6,002.36 14,012.39 9,404.35
20 MEGHALAYA 6 2,760.77 7,854.31 1,217.04
21 MIZORAM 13 7,757.62 11,189.69 4,763.58
22 MULTI STATE 130 3,17,331.17 4,24,714.5 1,39,175.98
23 NAGALAND 26 14,842.43 17,115.91 1,908.33
24 ODISHA 92 1,06,784.06 1,09,220.71 44,064.56
25 PUNJAB 27 13,539.35 15,038.78 9,195.74
26 RAJASTHAN 63 47,345.31 54,833.78 34,475.01
40
27 SIKKIM 9 3,476.73 6,368.17 1,122.03
28 TAMIL NADU 65 1,16,109.47 1,34,527.19 65,660.60
29 TELANGANA 56 39,959.69 42,435.36 13,611.66
30 TRIPURA 7 1,977.29 2,139.55 1,099.34
31 UTTAR PRADESH 118 1,44,722.96 1,49,516 66,300.70
32 UTTARAKHAND 31 35,661.33 44,552.75 15,105.34
33 WEST BENGAL 64 59,103.95 73,911.74 37,390.29
Total 1,635 19,47,462.67 23,41,784.84 9,96,613.94

41
 Project completed during 2019-20
There were 153 projects reported completion during the year 2019-20 (up to
1st October 2019). List of completed projects is given at Annexure-V.
Sector-wise analysis of the time overrun of projects under implementation on OCMS
(excluding completed projects) is indicated in Table-7.3
Table-7.3

Extent of time overrun in projects with respect to original schedule `150 Crore and above
(All Cost/ Expenditure in ` crore)

Projects with time overruns$

S. S ector No. of Original Anticipated Cost No. Origina Anticipated Range of

No. Projects Cost Cost overru l Cost T.O.R
n (%) Cost (in
months)

1 ATOM IC ENERGY 4 67,120.00 80,348.00 19.71 4 67,120.00 80,348.00 36 - 133

2 CIVIL AVIATION 13 8,607.51 8,734.44 1.47 5 3,573.83 3,700.62 6 - 21

3 COAL 107 1,04,997.33 1,07,975.18 2.84 37 18,538.74 20,501.47 12 - 144

4 FERTILISERS 5 1,299.07 1,310.72 0.90 1 197.79 209.44 34 - 34

5 INFORM ATION AND 3 969.43 969.43 0.00 1 204.32 204.32 9-9

BROADCASTING

6 M INES 5 7,078.62 7,078.62 0.00 0 0.00 0.00 -

7 STEEL 9 26,228.23 33,485.23 27.67 8 25,964.87 33,221.87 12 - 62

8 PETROLEUM 150 2,45,939.08 2,53,886.39 3.23 52 1,13,827.55 1,18,174.58 1 - 110

9 POWER 76 2,85,786.68 3,59,673.67 25.85 49 1,75,240.00 2,34,057.76 5 - 147

10 HEAVY INDUSTRY 1 1,554.00 1,554.00 0.00 0 0.00 0.00 -

11 HEALTH AND FAM ILY 21 9,480.23 9,597.52 1.24 10 4,400.02 4,499.80 2 - 83

WELFARE

12 RAILWAYS 315 4,61,117.38 6,64,220.06 44.05 146 1,80,706.42 2,65,634.96 1 - 324

13 ROAD TRANSPORT 856 5,09,942.21 5,31,171.55 4.16 225 1,39,959.97 1,47,056.07 1 - 149
AND HIGHWAYS

14 SHIPPING AND PORTS 1 4,200.00 5,369.18 27.84 0 0.00 0.00 -

15 TELECOM M UNICATIO 4 16,095.23 27,333.53 69.82 2 13,565.80 24,904.10 14 - 58

NS

16 URBAN 63 1,86,663.06 1,93,294.88 3.55 24 92,109.92 93,661.70 2 - 89

DEVELOPM ENT

17 WATER RESOURCES 2 10,384.61 55,782.44 437.16 1 10,151.04 55,548.87 15 - 15

Total 1635 19,47,462.67 23,41,784.84 20.25 565 8,45,560.27 10,81,723.56

42
Reasons for Time Overrun

(1) Issues with Union Ministries

(i) Environment, Forest and Wildlife Clearances;

(ii) Eco Sensitive Zone Clearance;

(iii) Tree Cutting Permission;

43
Amendments to The Factories Act, 1948 by the various State governments amid covid-19
lockdown period

STATE ESTABLISHMENTS MAXIMUM MAXIMUM TIME PERIOD

WEEKLY DAILY WORK
WORK HOURS HOURS

Gujarat All factories as per All factories Has been For three
the Factories Act, distribute increased from 9 months
1948 essential goods hours to 12 hours
and
manufacturing
essential goods
and food.

Himachal All factories as per All factories Has been For three
pradesh the Factories Act, distribute increased from 9 months
1948 essential goods hours to 12 hours
and
manufacturing
essential goods
and food.

rajasthan All factories All factories Has been For three

distribute essential distribute increased from 9 months
goods and essential goods hours to 12 hours
manufacturing and
essential goods and manufacturing
food. essential goods
and food.

44
Haryana All factories as per Not specified Has been For two months
the Factories Act, anywhere increased from 9
1948 hours to 12 hours

Uttar pradesh All factories as per All factories Has been For three
the Factories Act, distribute increased from 9 months
1948 essential goods hours to 12 hours
and
manufacturing
essential goods
and food.

Uttrakhand All factories Maximum 6 days Two shifts of 12 For three

distribute essential of work in a week hours each per months
goods and day
manufacturing
essential goods and
food.

Assam All factories as per Not specified Has been For three
the Factories Act, anywhere increased from 9 months
1948 hours to 12 hours

Goa All factories as per Not specified Has been For three
the Factories Act, anywhere increased from 9 months
1948 hours to 12 hours

Madhya pradesh All factories as per Not specified Not specified For three
the Factories Act, anywhere anywhere months
1948

45
CHAPTER-4
(CONCLUSIONS AND RECOMMENDATIONS)
Conclusion
Even as the ameliorate in labour laws is something the manufacturing industry and free-market experts
have been calling for long time. It needs to be ensured that the worker welfare is not compromised at any
cost. Instead of giving protection to the most marginalized and vulnerable, as exposed by Covid crisis,
and thus an opportunity to rectify the fractured economic system, these moves of amendments will further
worsen the crisis for those who are worst affected by it till now. Although it may appear that such
measures will be in place only for a limited period of time, they may be a herald of things to come and
may well become a permanent feature once the waters are tested. There is very little evidence that such
changes/ amendments to the labour legislation has resulted in attracting big investments and boost
industrialization of job creation. Labour rights are human rights and the Indian government cannot
abdicate its constitutional obligations and the commitments that it has made by reason of ratifying the
International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and
Cultural Rights and various Conventions of International Labour Organization, as a result of which it is
bound to promote decent work in conditions of security, equity, freedom and dignity of all the workers/
labourers.
The Notification/Orders of the various State Governments are thus absolutely illegal, being in breach of
the very provisions they are purported to be passed under. Moreover, they also provide for workers
working 12 hours a day, for at least 3 months, at a time when the most basic medical and scientific advice
to avoid contracting the deadly Covid-19 is to take rest and stay home and as healthy as possible. This
new regime ensures the complete opposite. That too as we move into the monsoon season when disease
and viruses are notoriously rampant.
KEY MESSAGES
• Anti-worker: Doubling overtime will dilute the principal objective of the Act.
• The varying overtime limits given in the Bill are contradictory and can therefore be manipulated
by industry.
• Inconsistent with the ILO convention.
• Strangulating job creation through doubling overtime limit.
• Health and social responsibilities of workers could be impacted due to over work.
• The proposed amendment will affect more than 60 percent of the factories.
• On the one hand Government pushing for formalization of the economy but with these
amendments they are reducing the number of workers who might benefit from formalization.

46
BIBLOGRAPHY-
www.annual report 2019-20 published by ASI
report of factories amendment act
Wikipedia. In
Report by ministry of health and welfare affrairs
C030 - Hours of Work (Commerce and Offices) Convention, 1930 (No. 30).
Annual report b y work and welfare ministry
Report by labour forces ministry

47